Marc Murtra: "We know how to transform the investment we receive into growth, knowledge, exports, high-quality employment, EBITDA and cash.”

Indra's Chairman, Marc Murtra, stated today at the General Shareholders' Meeting that the company knows how to transform the investment it receives into growth, knowledge, exports, quality employment, EBITDA and cash. "Only Indra can become the Spanish player with dual and multi-domain capabilities to defend Spanish interests in Europe in the aerospace and defence field with assurances," he said, after analyzing the events of the past fiscal year, a year marked by the Russian invasion of Ukraine, the last throes of the pandemic and the acceleration of the digital revolution.

After highlighting the company's good performance, the Chairman pointed out that Indra is successfully undertaking the renewal of part of its management team, while at the same time carrying out a deep strategic reflection on its long-term road map in line with the geopolitical events affecting the company. "As a result of this renewed concern for strategy, last September we set up the Strategy Committee within the Board of Directors. The work carried out in recent months in this Committee has helped us to shape our thinking and to better understand our challenges and opportunities," he said. “We’re a technological company that competes in a highly demanding, dynamic and disruptive global environment. Our competitive environment and the priorities of our customers and stakeholders are changing very rapidly and are subject to profound uncertainties, with many new and unknown elements." 

Information Technologies: Minsait

After a presentation of Indra's project in the Transport and Defence sector, Marc Murtra analyzed the company's performance in the field of information technologies, which is a central part of its revenues and profits in the field of information technology, which accounts for a core element of its revenues and profits. 

According to Indra's Chairman, "Minsait is strategically well-positioned, but there are still significant challenges ahead on its path of success such as advancing in platformization in order to gain more margin points with the reuse of software, greater standardization and industrialization, and thus continuing on the path of transformation from services to product; attracting committed technological talent to the project and retaining the best professionals so that they choose to develop with us; focusing on the areas and sectors we know best; continuing with the evolution of the mix of offerings and thus shifting our activity to higher-margin segments; and deepening our presence in key strategic markets for Minsait."

New stage of renewal and growth
 
Indra's Chairman had a few words of recognition for the extraordinary professional quality of the company's employees and confirmed that attracting and retaining talent will be one of the great strategic challenges of this new stage of renewal and growth. Marc Murtra also highlighted the strength of Indra's financial situation, the support and confidence of its main shareholders, and announced an intensification of relations with its main industrial partners and allies and the development of strategic alliances that combine interests, capabilities and objectives with the rest of the companies in Indra's business ecosystem.

Keynote speech by the CEO: historic results

For his part, Indra's CEO, Ignacio Mataix, highlighted the historic results achieved by the company, with a record order book exceeding €5.45 billion at the end of 2021 and with strong demand in the current year for all businesses, supported by the expected economic recovery in the main regions where the company operates. “Reported EBIT reached €256 M, which is 16% more than in 2019, and 31% more over the period of the last five years, figures that reflect profitable and sustained growth," said Ignacio Mataix in his speech. 

He also highlighted that both Transport & Defence and Minsait revenues reached record figures in 2021, growing at double-digit rates compared to the previous year, while operating profitability is already clearly above pre-pandemic levels. Finally, net income in 2021 exceeded the €140 million threshold and is almost 20% higher than in 2019, before the crisis. Cash generation reached an all-time high of €289 million, reducing Net Borrowings, both in absolute terms and as a multiple of EBITDA, to levels not seen in more than ten years, and returning to the payment of dividends. 
    
With respect to the current year, Ignacio Mataix highlighted the continuation and promotion of major Defence projects (LANZA 3D radars, Eurofighter and FCAS), the important Transport and Traffic contracts in Eurocontrol, Kuwait and South Korea, the securing of major projects in the United States and the commissioning of T-Mobilitat, as well as, in the case of Minsait, the significant growth of Public Authorities and Healthcare. He also highlighted Indra's strong commitment to innovation, which will allow the company to lead as prime, the systems projects that will undoubtedly be launched under the protection of increased funding in Defence and consolidate its position as the leading partner in Europe in European collaborative projects.

Ignacio Mataix also confirmed that Indra's solid financial position, following the deleveraging of recent years, will allow it "to accelerate the inorganic growth of our activities, always focused on profitable growth and the acquisition of key capabilities to strengthen our position in customers, segments and the regions selected in our strategic plan". According to Indra's CEO, Indra is currently the ideal partner in Transport and Defence, as well as in IT for highly complex global projects. 

Regarding the challenges, the CEO explained the measures that are being adopted to face the problems in the global supply chain, such as the integration of the Purchasing and Supply Chain areas in a single management with an end-to-end vision of the procurement process, the strengthening of program purchases and agreements with medium-term suppliers, the development of the design-to-cost initiative, and the upcoming implementation of a new radar production system, which will reduce the current time-to-market by less than half.

Statement sent to National Securities Market Commission (CNMV)

Pursuant to article 227 of the consolidated text of the Securities Market Act and any other applicable provision, Indra Sistemas, S.A. (Indra) makes public the following:

The 2022 Ordinary General Shareholders´ Meeting of Indra, held today in second call with an attendance quorum representing the 74,56% of the share capital, has adopted with a sufficient majority the following resolutions:

1. Approval of the Annual Accounts and Management Report for Indra Sistemas, S.A. and its Consolidated Group for the financial year ended on 31 December 2021.
2. Approval of the Consolidated Non-Financial Reporting Statement (Sustainability Report) for the financial year ended on 31 December 2021. 
3. Approval of the proposal for distribution of profits obtained in the 2021 financial year.
4. Approval of the Board of Directors’ management performance during the 2021 financial year.
5. Re-election of Deloitte, S.L as the accounts auditor for both the Company and its consolidated Group for the 2022, 2023 and 2024 financial years.
6. Ratification and re-election of directors: 

6.1. Ratification and re-election of Luis Abril Mazuelas as executive director.
6.2. Ratification and re-election of Francisco Javier García Sanz as independent director.
6.4. Re-election of Antonio Cuevas Delgado as proprietary director, representing the interests of the shareholder Sociedad Estatal de Participaciones Industriales.
6.5. Re-election of Miguel Sebastián Gascón as proprietary director, representing the interests of the shareholder Sociedad Estatal de Participaciones Industriales.
6 bis. Appointment of Jokin Aperribay Bedialauneta as propietary director, representing the interests of the shareholder Sapa Placencia Holding, S.L. 

7. Delegation to the Board of Directors, with an express right of substitution, of the power to increase the Company’s share capital in the terms and within the limits set out in Article 297.1.b) of the Spanish Companies Act Grant of powers to exclude pre-emptive subscription rights, pursuant to the provisions contained in Article 506 of the Spanish Companies Act, limited in this case to a maximum par amount equivalent to 10% of the share capital amount. To render without effect the delegation of powers that has been in effect in this regard up to the present time, in the portion that has not been made use of.
8. Delegation to the Board of Directors of the power (with an express right of substitution) to issue, on one or more occasions over a period of five years, bonds or securities and other non-convertible fixed-income securities, warrants or any other instruments of a similar nature, up to a limit of 1,000 million euros. To render without effect the delegation of powers that has been in effect in this regard up to the present time, in the portion that has not been made use of in respect of the issue of non-convertible securities.
9. Delegation to the Board of Directors of the power (with an express right of substitution) to issue, on one or more occasions, bonds or securities that can be converted into company shares, along with the power to issue other fixed-income securities, warrants and other instruments that afford the right to subscribe company shares, up to a limit of 500 million euros. The authorization includes the delegation of powers, where applicable: (i) to determine the bases for and types of conversion; (ii) to increase the share capital in the amount required to cover any requests for conversion; and (iii) to exclude pre-emptive subscription rights in issues, limited in this last case, to a maximum par amount equivalent to 10% of the Company’s share capital. To render without effect the delegation of powers that has been in effect in this regard up to the present time, in the portion that has not been made use of in respect of the issue of convertible securities.
10. Consultative vote on the Annual Remuneration Report for 2021.
11. Authorization and delegation of powers for the formalization, entry and execution of the resolutions adopted by the General Meeting.

The legal obligation of reporting to the General Shareholders´ Meeting the changes made to the Board of Directors Regulations since the last General Shareholders´ Meeting has been complied.
Furthermore, the proposal of the re-election of Isabel Torremocha Ferrezuelo has not been adopted for lack of a sufficient majority, and that the shareholder Amber Selective Opportunities Fund II has proposed to vote the following items out of the agenda, which has been adopted with a sufficient majority:

1.    To cease Alberto Terol Esteban as director.
2.    To cease Carmen Aquerreta Ferraz as director.
3.    To cease Enrique de Leyva Pérez as director.
4.    To cease Ana de Pro Gonzalo as director.

All the resolutions approved, as well as the voting results, will be available from the date hereof at the corporate website as provided in article 525 of the Spanish Companies Act.
The composition of the Board of Directors and the professional profiles of their members are available at the Company´s website (www.indracompany.com)

About Indra

Indra (www.indracompany.com) is one of the leading global technology and consulting companies and the technological partner for core business operations of its customers worldwide. It is a world-leader in providing proprietary solutions in specific segments in Transport and Defence markets, and a leading firm in Digital Transformation and Information Technologies in Spain and Latin America through its affiliate Minsait. Its business model is based on a comprehensive range of proprietary products, with a high-value, end-to-end focus and with a high innovation component. In the 2021 financial year, Indra achieved revenue of €3.390 billion, near 52,000 employees, a local presence in 46 countries and business operations in over 140 countries.